Raffles acquires Swissotels Hotels and Resorts

SINGAPORE — Raffles Holdings Ltd. has agreed to acquire Swissotel Holding AG, which owns and operates the Swissotel Hotel and Resorts, from SAirRelations, a division of the SAirGroup, for S$439 million in stock. Both parties expect to close the transaction by the end of May.

With the transaction, Raffles gains ownership of the Swissotel brand and its trademarks and management contracts for 23 hotels, including six majority- or wholly owned properties and minority interests in three hotels. By the end of 2001, Raffles has the opportunity to acquire the remaining third-party minority interests in the U.S. subsidiary that manages the North American Swissotel operations.

The deal increases Raffles’ inventory of deluxe and luxury rooms by 139% to 13,457 rooms.